Is SLB overvalued or undervalued?

As of 17 October 2025, the valuation grade for SLB has moved from expensive to attractive, indicating a shift towards a more favorable assessment. Based on the current metrics, SLB appears to be undervalued, especially when considering its P/E ratio of 10, a PEG ratio of 0.70, and an EV to EBITDA ratio of 6.91. In comparison, peer Baker Hughes Co. has a higher P/E ratio of 14.48, suggesting that SLB may offer better value relative to its competitors.
Despite recent stock performance showing a decline of 25.82% over the past year compared to a 14.08% gain in the S&P 500, SLB's strong fundamentals, including a ROE of 25.15% and a robust dividend yield of 252.67%, support the argument for its undervaluation. Overall, SLB's current valuation metrics and competitive positioning suggest that it is an attractive investment opportunity.